Vous êtes sur la page 1sur 7

February 24, 2014

GT Advanced Technologies Inc. Announces Results for Fourth Quarter and Fiscal Year 2013
MERRIMACK, N.H., Feb. 24, 2014 (GLOBE NEWSWIRE) -- GT Advanced Technologies Inc. (Nasdaq:GTAT) today reported
results for the fourth quarter and fiscal year 2013, which ended December 31, 2013.
Management Commentary
"Our results for the December quarter were in line with our guidance and the anticipated growth trajectory of our business
remains unchanged," said Tom Gutierrez, president and chief executive officer. "We expect to return to profitability during the
second half of 2014.
"Our arrangement to supply sapphire materials to Apple is progressing well and we started to build out the facility in Arizona
and staff the operation during the quarter," said Gutierrez. "We are pleased to have Apple as a sapphire customer and to be in
a position to leverage our proprietary know-how to enable the supply of this versatile material. While our primary focus during
the balance of the year is to continue to execute on our commitments in Arizona, our aim is to position GT not only as an
exceptional sapphire supplier to Apple but also as an unparalleled world-class supplier of sapphire material and equipment to a
variety of customers.
"Although we have significant opportunities in sapphire, the GT story is not only about our emerging sapphire materials
business. In fact, our entry into sapphire materials may enable us to expand into other materials segments once we have fully
ramped the operation in Arizona. The many diversification and investment seeds we have planted over the last several years in
the LED, power electronics, advanced solar and industrial markets are expected to begin to bear fruit over the next 18 months.
We are seeing significant interest in our new products and now expect equipment orders from these initiatives to be received
during the latter part of 2014, with meaningful revenue recognition beginning in early 2015.
"During the last year, we worked to ensure that our balance sheet continues to provide us with the strategic and operational
flexibility necessary to take advantage of the many growth opportunities that we have identified," concluded Gutierrez.
Fourth Quarter and Full Year 2013 Financial Results
During 2013, the company made the strategic decision to forego ASF equipment sales while building out its new sapphire
materials capacity. This decision has had, and will have, a clear negative impact on the company's fourth quarter and full year
results for 2013 and near term future results.
Revenue for the fourth quarter came in at $32.6 million including $2.5 million in polysilicon, $11.3 million in photovoltaic (PV),
and $18.8 million in sapphire. This compares to revenue in the third quarter of $40.3 million and $102.3 million in the fourth
quarter of fiscal 2012. Revenue for the year ended December 31, 2013 was $299.0 million compared to $733.5 million for the
year ended December 31, 2012.
Summary results for the quarter and year are presented in the table below:
Three-Months Ended

Revenue

Dec 31st,

Sept 28th,

Dec 31st,

2013

2013

2012

$32.6

$40.3

$102.3

Full Year
Dec 31st,
2013
$299.0

Dec 31st,
2012
$733.5

Gross Margin

9.3%

44.1%

(40.2%)

31.1%

28.1%

GAAP EPS

($0.33)

($0.31)

($1.34)

($0.71)

($0.53)

Non-GAAP EPS

($0.26)

($0.16)

($0.15)

($0.35)

$0.73

Cash, Backlog and Orders


At the end of the fourth quarter, the balance sheet had cash, cash equivalents and restricted cash of $593.0 million and debt
of $283.9 million. This compares to $418.1 million of cash and cash equivalents at the end of the fourth quarter of calendar
2012 which included $297.0 million of total debt. During the fourth quarter, the company received the first of a series of
prepayments under its multi-year sapphire material supply agreement with Apple. Additionally, the company completed a

concurrent common stock and convertible debt offering in December 2013 that resulted in net proceeds of approximately
$290.0 million. The company also paid off an outstanding term loan of $96.0 million.
As of December 31, 2013, the company's total backlog was $602.2 million comprised of equipment orders only. This included
$298.7 million in the polysilicon segment, $11.3 million in the PV segment and $292.1 million in the sapphire segment. New
orders during the fourth quarter of calendar 2013 were $23.8 million. The company adjusted backlog down by approximately
$47.3 million during the quarter primarily related to an arrangement with an ASF customer that was modified. All orders for
sapphire material have been and will continue to be excluded from backlog going forward.
Business Outlook
The company expects that 2014 will be a transformational year, one in which it builds a sapphire materials business while
continuing to invest in the new technologies that will drive its equipment business in 2015 and beyond.
The company expects that revenue and profitability will be back end loaded, with its sapphire materials business ramping as
the year progresses, and with improving financial performance during the second half of 2014.
On an annualized basis, during 2014, the company expects revenues to range from $600 million to $800 million, with
approximately 15% of total revenues occurring in the first half of the year. The company expects that its sapphire segment will
account for more than 80% of total revenue in 2014. The sapphire segment includes the company's equipment and materials
businesses in the LED, industrial and consumer electronics markets.
During the first quarter of 2014, the company expects to generate revenues in the range of $20 million to $30 million with a
non-GAAP loss per share of $0.20 to $0.25.
Consolidated gross margins for 2014 are expected to be in the range of 25% to 27%, reflecting lower margin material
shipments during the year, inefficiencies related to the ramp up of the sapphire materials business and underutilization of the
company's equipment operations.
The company expects that 2014 non-GAAP earnings per share will be in the range of $0.02 to $0.18. This assumes an
average outstanding share count of 148 million shares.
The company's cash balance at year end is currently expected to be in the range of $400 million to $500 million.
Conference Call, Webcast
Today, Monday, February 24, 2014, at 8:00am ET, the company will host a live conference call with Tom Gutierrez, president
and chief executive officer, and Richard Gaynor, chief financial officer, to discuss its fourth quarter and full year 2013 results,
general business update and fiscal year 2014 guidance outlook.
The call will be webcast live and can be accessed by logging on to the "Investors" section of GT Advanced Technologies'
website, http://investor.gtat.com/. A slide presentation will accompany the call. The live call can also be accessed by dialing
(631) 291-4543. No password is required to access the webcast or call.
A replay of the call will be available for 90-days. To access the webcast replay please go to http://investor.gtat.com/ and select
the webcast replay link on the 'Events and Presentations' page. Or, please dial (404) 537-3406. The telephone replay will be
available through March 5, 2014 and requires the passcode 44370871.
Investor Financial Summary Document
A comprehensive summary of the company's financial performance can be found on the Investor Relations section of its
website on the "Q4 FY13 Earnings Call" webcast page. To access: http://investor.gtat.com.
Technology Day Event
Given the interest level in and importance of its new product developments, the company will be webcasting a New Product and
Technology Briefing on March 14, 2014 that will focus exclusively on our new product and technology initiatives. Additional
information regarding the webcast will be available later this week at http://investor.gtat.com/.
About GT Advanced Technologies Inc.
GT Advanced Technologies Inc. is a leading diversified technology company producing advanced materials and innovative

crystal growth equipment for the global consumer electronics, power electronics, solar and LED industries. Its technical
innovations accelerate the use of advanced materials, enabling a new generation of products across this diversified set of
global markets. For additional information about GT Advanced Technologies, please visit www.gtat.com.
GT Advanced Technologies Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
(Unaudited)

December
31,

December
31,

2013

2012

$ 498,213

$ 418,095

1,330

--

Accounts receivable, net

12,377

23,829

Inventories

Assets
Current assets:
Cash and cash equivalents
Restricted cash

39,087

133,286

Deferred costs

2,977

30,248

Vendor advances

1,341

32,440

22,194

28,226

845

1,516

7,003

9,168

585,367

676,808

209,760

77,980

Restricted cash

93,419

--

Intangible assets, net

95,943

90,516

Goodwill

54,279

48,021

162,075

111,343

$ 1,200,843

$ 1,004,668

$ --

$ 7,250

Accounts payable

77,303

44,848

Accrued expenses

39,115

30,928

234

4,901

Customer deposits

38,995

111,777

Deferred revenue

19,724

86,098

Accrued income taxes

10,282

21,716

185,653

307,518

Deferred income taxes


Refundable income taxes
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net

Other assets
Total assets
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt

Contingent consideration

Total current liabilities


Long-term debt

--

132,313

Prepayment obligation

172,475

--

Convertible notes

283,914

157,440

Deferred income taxes

33,023

24,459

Customer deposits

55,598

71,340

Deferred revenue

99,672

35,848

Contingent consideration

15,173

5,414

808

2,323

Other non-current liabilities


Accrued income taxes
Total liabilities

28,105

25,762

874,421

762,417

Commitments and contingencies


Stockholders' equity:
Preferred stock, 10,000 shares authorized, none issued and outstanding

--

Common stock, $0.01 par value; 500,000 shares authorized, 134,463 and 119,293 shares issued and
outstanding as of December 31, 2013 and December 31, 2012, respectively
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity

--

1,345

1,193

353,777

183,565

1,259

806

(29,959)

56,687

326,422

242,251

$ 1,200,843

$ 1,004,668

GT Advanced Technologies Inc.


Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended

Revenue

Twelve Months Ended

December
31,

September
28,

December
31,

December
31,

December
31,

2013

2013

2012

2013

2012

$32,570

$40,291

$102,333

$298,967

$733,536

Cost of revenue

29,531

22,514

143,491

205,920

527,132

Gross profit

3,039

17,777

(41,158)

93,047

206,404

26,967

21,075

22,695

83,006

70,649

Operating expenses:
Research and development
Selling and marketing

4,509

3,496

5,458

15,379

15,115

General and administrative

20,460

17,427

13,801

68,967

59,532

Contingent consideration expense (income)

(2,116)

4,971

296

(1,119)

(8,965)

Impairment of goodwill

--

--

57,037

--

57,037

Restructuring charges

--

4,010

33,441

6,868

33,441

2,975

2,976

2,534

11,073

10,165

Amortization of intangible assets


Total operating expenses
(Loss) income from operations

52,795

53,955

135,262

184,174

236,974

(49,756)

(36,178)

(176,420)

(91,127)

(30,570)

Other income (expense):


Interest income

78

122

131

364

181

(11,370)

(6,456)

(5,957)

(31,832)

(9,355)

44

62

(34)

117

(1,002)

(Loss) income before income taxes

(61,004)

(42,450)

(182,280)

(122,478)

(40,746)

(Benefit) provision for income taxes

(19,238)

(4,304)

(22,871)

(35,832)

22,489

($41,766)

($38,146)

($159,409)

($86,646)

($63,235)

Basic

($0.33)

($0.31)

($1.34)

($0.71)

($0.53)

Diluted

($0.33)

($0.31)

($1.34)

($0.71)

($0.53)

Basic

126,049

122,183

119,109

122,481

118,931

Diluted

126,049

122,183

119,109

122,481

118,931

Interest expense
Other, net

Net (loss) income


Net (loss) income per share:

Weighted-average number of shares used in per share


calculations:

Reconciliation of Non-GAAP Financial Measures


In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, we are presenting

the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable
GAAP measures.
GT Advanced Technologies Inc.
Reconciliation of GAAP to non-GAAP results
(In thousands, except per share data)
(Unaudited)

Three Months Ended


December
31,

Twelve Months Ended

September 28, December 31, December 31, December 31,

2013

2013

2012

2013

2012

Non-GAAP Gross Profit and Gross Margin


Revenue
Cost of revenue
Gross profit

$32,570

$40,291

$102,333

$298,967

$733,536

29,531

22,514

143,491

205,920

527,132

3,039

17,777

(41,158)

93,047

206,404

Non-GAAP adjustments:
Write-down of inventory, vendor advances and PO cancellation
fees

943

19

71,754

1,499

71,754

2,488

--

2,520

2,488

2,520

Non-GAAP gross profit

$6,470

$17,796

$33,116

$97,034

$280,678

Non-GAAP gross margin

19.9%

44.2%

32.4%

32.5%

38.3%

Accelerated depreciation for early retirement of fixed assets

GT Advanced Technologies Inc.


Reconciliation of GAAP to non-GAAP results
(In thousands, except per share data)
(Unaudited)

Three Months Ended

Twelve Months Ended

December
31,

September
28,

December
31,

December
31,

December
31,

2013

2013

2012

2013

2012

($41,766)

($38,146)

($159,409)

($86,647)

($63,235)

Amortization of acquired intangible assets

2,975

2,976

2,534

11,073

10,165

Share-based compensation expense

4,797

4,555

2,084

18,680

15,176

Third party acquisition related expenses

434

371

945

1,893

1,550

Write-down of inventory, vendor advances and PO cancellation


fees

943

19

71,754

1,499

71,754

Non-GAAP Net Income & Earnings per Share


Net (loss) income

Non-GAAP adjustments:

Accelerated depreciation for early retirement of fixed assets

6,794

63

2,520

9,393

2,520

Impairment of goodwill

--

--

57,037

--

57,037

Restructuring charges

--

4,010

33,441

6,868

33,441

(2,116)

4,971

296

(1,119)

(8,965)

8,812

3,352

3,042

19,676

3,799

(13,402)

(1,539)

(32,354)

(24,053)

(35,349)

Contingent consideration expense (income)


Non-cash portion of interest expense
Income tax effect of non-GAAP adjustments (1)

Non-GAAP net (loss) income

Non-GAAP earnings per diluted share ("Non-GAAP EPS")

Diluted weighted average shares outstanding

($32,529)

($19,368)

($18,110)

($42,737)

$87,893

($0.26)

($0.16)

($0.15)

($0.35)

$0.73

126,049

122,183

119,109

122,481

120,067

(1) The Company utilized the with and without method to determine the income tax effect on non-GAAP adjustments.

Use of Non-GAAP Financial Measures


In addition to providing financial measurements based on generally accepted accounting principles in the United States of
America (GAAP), GT Advanced Technologies is providing additional financial metrics that are not prepared in accordance with
GAAP (non-GAAP). We believe that the inclusion of these non-GAAP financial measures helps investors to gain a meaningful
understanding of our past performance and future prospects, consistent with how management measures and forecasts
company performance, especially when comparing such results to previous periods or forecasts. Our management uses these
non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and
comparing our performance to prior periods and to the performance of our competitors. Management also uses these
measures in its financial and operational decision-making.
We define "non-GAAP gross profit" as GAAP gross profit excluding the write-down of inventory, vendor advances and PO
cancellation fees, and the accelerated depreciation for early retirement of fixed assets. We consider non-GAAP gross profit to
be an important indicator of our operational strength and performance of our business because it eliminates the effects of
events that are not part of the Company's core operations.
We define "non-GAAP net income" as GAAP net income excluding share-based compensation expense, amortization of
acquired intangible assets, acquisition and acquisition related expenses, contingent consideration, write-downs of inventory,
vendor advances and PO cancellation fees, restructuring and asset impairment, accelerated depreciation for early retirement
of fixed assets, and the non-cash portion of interest expense. We consider non-GAAP net income to be an important indicator
of our operational strength and performance of our business because it eliminates the effects of events that are not part of the
Company's core operations.
We define "non-GAAP earnings per share on a fully-diluted basis" as our non-GAAP net income divided by our weighted
average shares outstanding on a fully-diluted basis.
The forward-looking guidance included in this announcement excludes certain items such as amortization of intangibles and
other charges. Because the amount of these items is not fully known to us at this time, we are unable to provide guidance for,
or a reconciliation to, the most directly comparable GAAP financial measures. The impact of these excluded items may cause
the estimated non-GAAP financial measures to differ materially from the comparable GAAP financial measures.
Forward-Looking Statements
Some of the information in this press release relates to future expectations, plans and prospects for our business and industry
that constitute "forward-looking statements" for the purposes of the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995, including but not limited to: the anticipated growth trajectory of the Company's business remains
unchanged; Company expects to return to profitability during the second half of 2014; the Company is in a position whereby its
sapphire technology can enable the development of new applications for sapphire material; The Company's aim is to position
the Company not only as an exceptional sapphire supplier to Apple but also as an unparalleled world-class supplier of sapphire
material and equipment for a variety of applications; the diversification and investment seeds the Company has planted over
the last several years in the LED, power electronics and advanced solar and industrial markets are expected to begin to bear
fruit over the next 18 months; the company now expects equipment orders from investments to be received during the latter
part of 2014, with meaningful revenue recognition beginning in early 2015; all statements under the caption "Business
Outlook;" Company continues to from solar to a diversified, stronger, less cyclical company with multiple revenue streams; the
company expects that 2014 will be a transformational year, one in which its sapphire materials business ramps and it continues
to invest in the new technologies that will drive its equipment business in 2015 and beyond; the company expects that revenue
and profitability will be back end loaded with its sapphire materials business ramping gradually as the year progresses,
resulting in improved financial performance during the back half of 2014; the company expects revenues in 2014 to range from
$600M to $800M, and the percentage expected to be from the sapphire segment; the company expects total revenues in the
first quarter of 2014 to be in the range of $20-$30 million; revenues in the first half are expected to account for approximately
15% of total revenues for the 2014; consolidated gross margins for 2014 are expected to be in the range of 25% to 27% and
the reasons therefore; capital spending is expected to be approximately $500-$600 million, with operating expenses on a non-

GAAP basis of approximately $140-$160 million; Company expects capital spending will be heavily weighted towards the first
half of the year; the company's cash balance at year end is currently expected to be in the range of $400 to $500 million; nonGAAP EPS for the year is expected to range from $.02 to $.18 per share, with the end result being primarily dependent on the
mix of equipment and materials business; the company expects to receive initial orders for Hyperion, SiC, HVPE and HiCz
during the year, revenue recognition will not likely occur until 2015 on the bulk of this business; the company expects to return
to profitability during the second half of 2014 with profitability is expected to be heavily weighted to the latter part of the year;
Company expects Non-GAAP EPS during the first quarter of 2014 is expected to range from a loss of $.20 to $.25. These
forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors,
many of which are outside the company's control, which could cause actual events to differ materially from those expressed or
implied by these statements. These factors may include the possibility that the company is unable to recognize revenue on
contracts in its order backlog and may not recognize any benefits from its arrangement with Apple. Although the Company's
backlog is based on signed purchase orders or other written contractual commitments in effect as of the end of our fiscal year
ended December 31, 2013, we cannot guarantee that our bookings or order backlog or our arrangement with Apple will result
in actual revenue in the originally anticipated period or at all, which could reduce our revenue, profitability and liquidity. Other
factors that may cause actual events to differ materially from those expressed or implied by our forward-looking statements
include the Company's ability to transition its business to being a sapphire material and equipment provider; Apple purchasing
sufficient quantities under its arrangements with the Company; the Company complying with the provisions of its arrangements
with Apple; the impact of continued decreased demand and/or excess capacity in the markets for the output of our solar
(polysilicon and photovoltaic) and sapphire equipment, general economic conditions and the tightening credit markets having
an adverse impact on demand for our products; increased trade tensions between the United States and China (and other
jurisdictions); the possibility that changes in government incentives may reduce demand for solar products, which would, in
turn, reduce demand for our polysilicon and photovoltaic equipment, technological changes could render existing products or
technologies obsolete, the Company may be unable to protect its intellectual property rights or may be subject to liability for
violating intellectual property rights of another party, competition from other manufacturers may increase, exchange rate
fluctuations and conditions in the credit markets and economy may reduce demand for the company's products and various
other risks as outlined in GT Advanced Technologies Inc.'s filings with the Securities and Exchange Commission, including the
statements under the heading "Risk Factors" in the company's quarterly report on Form 10-Q for the quarter ended September
28, 2013. Statements in this press release should be evaluated in light of these important factors. The statements in this press
release represent GT Advanced Technologies Inc.'s expectations and beliefs as of the date of this press release. GT
Advanced Technologies Inc. anticipates that subsequent events and developments may cause these expectations and beliefs
to change. GT Advanced Technologies Inc. is under no obligation to, and expressly disclaims any such obligation to, update or
alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
CONTACT: Media
Jeff Nestel-Patt
jnestelpatt@gtat.com
603-204-2883

Investor Relations/Analysts
Investor Hotline
investor.inquiry@gtat.com
866-957-8112

Source: GT Advanced Technologies


News Provided by Acquire Media